Summary of loan programs
The Loan Programs Office (LPO) within the Department of Energy (DOE) offers a variety of loans and loan guarantees for energy-related projects, with over $40 billion in total financing available for such programs. This report summarizes these programs. LPO offers access to debt capital, flexible financing, close partnerships throughout the term of the loan, and specialized financial, legal, technical and environmental expertise for all programs listed below. These programs also focus on projects that aim to reduce, avoid or sequester greenhouse gas emissions.
Loan guarantees for advanced fossil energy projects
LPO has $8.5 billion in loan guarantee authority for advanced fossil energy projects under the Title 17 Innovative Energy Loan Guarantee Program (Title 17), authorized by the Energy Policy Act of 2005. This program helps finance projects in four broad technology categories: advanced development resources, low carbon energy systems, carbon capture and efficiency improvements.
Loan guarantees for advanced nuclear power projects
LPO has $10.9 billion in loan guarantee authority for Advanced Nuclear Power Projects, including $2 billion for Tier 1 projects, under the Title 17 Innovative Energy Loan Guarantee Program (Title 17), authorized by the Act Energy Policy of 2005. This program helps finance projects in four broad technology categories: advanced nuclear reactors, small modular reactors, improvements and upgrades to existing facilities, and advanced nuclear technology (conversion or enrichment of uranium and/or fabrication of nuclear fuel).
The loan program for the production of vehicles with advanced technology
The LPO has $17.7 billion in loan authority to support production of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicle Manufacturing (ATVM) Loan Program, authorized by the Energy Independence and Security Act of 2007 Two types of borrowers are eligible under the ATVM: manufacturers of advanced technology vehicles that have achieved specified fuel economy targets, and manufacturers of components or materials that support the fuel economy performance of eligible vehicles.
Innovative clean energy loan guarantees
LPO has $2.5 billion in loan guarantee authority for innovative clean energy projects under the Title 17 Innovative Clean Energy Loan Guarantee Program (Title 17), authorized by the Energy Policy Act of 2005. Technology areas of interest to This program includes advanced grid integration and storage, emerging biofuels, waste-to-energy technology, upgrading existing facilities and efficiency improvements.
Tribal Energy Loan Guarantee Program
LPO has $2 billion in loans to support economic opportunities for tribes through energy development projects and activities through the Tribal Energy Loan Guarantee Program (TELGP). DOE may guarantee up to 90% of the outstanding principal and interest on any loan made to a federally recognized Indian tribe or Alaska Native Energy Development Corporation. The tribal borrower will be required to invest equity in the project and all project debt will be secured by non-federal lenders.
Law on Investments in Infrastructure and Works – DOE
Summary of BIL components and current Announcement of funding opportunities
The Infrastructure Investment and Jobs Act (also known as the Bipartisan Infrastructure Act, or BIL), which was signed into law by President Joe Biden on November 15, 2021, has made historic investments in America’s environmental infrastructure. Various US Department of Energy (DOE) grant programs have received significant new financial support under the BIL. The new resources DOE received under the BIF are summarized below:
- The law provides more than $62 billion to DOE overall, which will help fund 60 new DOE programs.
- The law provides $21.5 billion in funding for clean energy technology and research centers focused on next-generation technology, including:
- $8 billion for pure hydrogen
- More than $10 billion for carbon capture, direct air capture and reduction of industrial emissions
- $2.5 billion for advanced nuclear technology
- $1 billion for demonstration projects in rural areas and $500 million for demonstration projects in economically disadvantaged communities
- The law provides more than $700 million for existing hydro plants.
- The law foresees 6 billion dollars for Civilian Nuclear Credit Program to prevent the early retirement of existing zero-carbon nuclear power plants.
- The law provides $11 billion for environmental resiliency and cybersecurity improvements for electric infrastructure across states, tribes and utilities.
- The law invests more than $7 billion in the battery supply chain.
- The law provides $1.5 billion in additional funding for clean hydrogen production and recycling RD&D.
- The law provides $750 million for grant programs that support energy technology production projects in communities where coal mines and/or coal-fired power plants have closed.
- The law provides 3.5 billion dollars for Weather assistance programwhich reduces energy costs and increases energy efficiency for low-income households.
- The law provides $500 million for improving energy efficiency and renewable energy in schools.
- The law provides $550 million for the energy efficiency and conservation block grant program and $500 million for State Energy Program.
- The law sets $2.5 billion Broadcast Facilitation Program for DOE to help develop power transmission infrastructure.
- The law provides for a $3 billion expansion Smart Grid Investment Matching Grants Program.
A complete list of pending announcements of funding opportunities for DOE grant programs can be found below.